LACERS plans $450m in commitments to real estate funds

Los Angeles City Employees' Retirement System has laid out its real estate portfolio goals for the year.

Name: Los Angeles City Employees’ Retirement System
Headquarters: Los Angeles, US
AUM: $22.8 billion
Allocation to private real estate: 5.76%

Los Angeles City Employees’ Retirement System has outlined its annual real estate investment plan for 2024-25, targeting up to $450 million in real estate commitments.

The US public pension currently manages a $1.23 billion real estate portfolio as of December 31, 2023 with a target allocation of 7% to the asset class.

LACERS is considering up to $200 million in commitments to their core real estate portfolio, spread across two or three core/core-plus commitments. The plan would consider three key focus points: exploring secondary market opportunities with existing high performance managers; targeting new blind pool core open-end fund launches; and a position to target new niche specialist managers in a sector LACERS currently does not have exposure to.

Regarding LACERS’ non-core portfolio, its aim is to target up to $250 million in non-core commitments, spread across five or six different funds. The non-core portfolio will look to focus on re-ups with high conviction managers, maximizing the pension funds savings on fees. Moreover, LACERS will continue to assess emerging managers, as well as those with niche investment opportunities.

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